Palm Beach Socialite Avoids Prison Sentence

WEST PALM BEACH — Lin Castre Gosman won't be going to prison on the criminal bankruptcy, mortgage and tax fraud charges she pleaded guilty to in April.

"I don't see how imprisonment is going to make the situation any better for anybody," U.S. District Judge Kenneth Ryskamp said as he sentenced Gosman, 60, to two years' house arrest, one year of probation and 1,000 hours of community service. Gosman's sentence includes 28 days she already served after a November 2008 arrest on charges that stem from her actions following the 2001 bankruptcy filing of her husband, former health care magnate Abe Gosman.

Ryskamp said his decision to spare Gosman any more jail time probably will not be popular and that there are vindictive people who want to see wealthy people punished. Gosman has already paid the Internal Revenue Service $350,000 after failing to file tax returns in 2004 to 2008 as well as another $350,000 forfeited to the federal government.

Except for prosecutors, which Ryskamp said conducted the most aggressive case of its kind he has ever witnessed in 23 years on the bench, those who know Gosman have said she doesn't belong in jail.

"The U.S. Attorney's Office is hailing this like it's the crime of the century," Ryskamp said during the hearing. "You make this sound like a fraud case. This isn't Bernie Madoff."

A tearful but smiling Gosman turned to her husband immediately after the sentencing, kissed him and said, "I'm so happy this is over."

Ryskamp and Gosman's attorney, Donald Bierman, both stressed that Gosman has been through a nightmare that involved the loss of the couple's 33,000-square-foot, $40 million Palm Beach estate, public humiliation and Lin Gosman being called a liar and a cheat in court.

Assistant U.S. Attorney Carolyn Bell sought a sentence of 37 months in prison, calling it reasonable for three separate crimes. She also said such a sentence would reflect the seriousness of the offense, respect of the law and serve as a warning to others who want to "lie, cheat and steal."